Taxes Consolidation Act 1997 Schedule 3, paragraph 9

Foreign service portion of a termination payment

Paragraph 9 of Schedule 3 provides relief from income tax on the foreign service portion of a termination payment made under section 123.

• Where an employee's service included foreign service, a proportion of the termination payment is deducted from the taxable amount.
• The deductible proportion equals the length of foreign service divided by the length of total service before the relevant date.
• This relief applies in addition to any deductions available under paragraphs 6 to 8 of Schedule 3.
• Where foreign service is insufficient to give complete exemption under section 201, only the proportionate amount is exempt.